The federal stimulus package, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act is a $2.2 trillion package to provide additional help for businesses, workers, and the health care system available. The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, (PPP) the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. The Interest Rate on PPP loans has been changed from 0.5% to 1%. An entity is limited to one PPP loan.
The SBA forgivable Paycheck Protection Loan is now open through June 30, 2020. “First-Come-First Served” Find the lender nearest you: Type in their zip code, a list of approved PPP lenders in your area will open.
The bill offers the following aid for small businesses (those with less than 500 employees), 501(c)3s, sole proprietors, and independent contractors
Emergency Economic Injury Grant is Available
New Mexico Businesses and Non-profits are eligible-
These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
To apply go to: https://disasterloan.sba.gov/ela/ For assistance SBDC can help you
At a glance— What might be right for you
The following questions might help point you in the right direction. Do you need?
- Capital to cover the cost of retaining employees? Then the Paycheck Protection Program might be right for you.
- A quick infusion of a smaller amount of cash to cover you right now? You might want to look into an Emergency Economic Injury Grant.
- To ease your fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help.
- No-Cost Business Consulting to help you navigate this uncertain economic time? Call the SBDC nearest you for assistance or log on to www.NMSBDC.org